Buying a property is a big step for any Indian family. You save money for years. You take a loan. You dream about your new home. But one wrong step in checking papers can ruin everything. Many people lose their hard earned money because they do not check property documents properly. This article will teach you how to verify property documents in India in a simple way. You do not need a law degree to understand this. You just need to follow these steps carefully.
Why Verifying Property Documents Is Important?
In India, land and property disputes are very common. Two or three people sometimes claim the same property. Some sellers hide the real truth about the property. Some documents are fake. If you do not check everything before paying money, you may end up in court for years. You may lose both the property and the money. That is why verifying documents is not an extra step. It is the most important step of buying any property.
Who Should Verify The Documents?
You should never trust only the seller. The seller may be a good person but even good people sometimes do not know the full history of the property. So you must do your own check. You can also take help from a local lawyer who knows property work. Banks also check documents before giving a home loan. But you should not depend fully on the bank. Bank checks are for their safety. You must do your own check for your own safety.
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First Thing To Ask The Seller
Before you see any paper, ask the seller one simple question. Is the property freehold or leasehold? Freehold means you become the full owner. Leasehold means you get the property for a fixed number of years. Most buyers want freehold property. If the seller says it is leasehold, you need to check how many years are left. Also ask if the property is under any loan. Many times people try to sell a property that is still mortgaged to a bank.
The First Document Chain Of Ownership
The most important set of papers is the chain of ownership. This means the list of all people who owned this property before the current seller. You have to see how the property moved from the first owner to the current owner. This chain should be clean. There should be no missing link. If any one owner in the middle did not register the property properly, the chain is broken. A broken chain means the current seller may not have full right to sell.
Ask the seller to give you copies of all sale deeds from the last 30 years at least. For older property in cities like Delhi, Mumbai or Kolkata, you may need to go back 50 years. Go through each sale deed. See the names. See the signatures. See the registration number. If something looks missing or unclear, do not move forward.
The Sale Deed
The sale deed is the main paper of any property deal. This paper proves that the seller has bought the property from someone. A real sale deed is always registered at the sub registrar office. It has a stamp from the government. It has a registration number. It has the photo and signature of both buyer and seller. It also has the exact measurement and location of the property.
If the seller gives you a sale deed that is not registered, stop right there. An unregistered sale deed has no value in the eyes of the law. You cannot take a loan on it. You cannot sell the property later. So never accept any property where the seller does not have a registered sale deed.
The Mother Deed
Many buyers do not know about mother deed. The mother deed is the first paper of the property when it was separated from a larger piece of land. For example, if someone bought a big piece of land 40 years ago and then divided it into small plots, the first paper that created your plot is the mother deed. This paper is very important. It shows how the property was born.
Without the mother deed, the ownership chain is not complete. Ask the seller for a clear copy of the mother deed. Check if it is registered. Check the date. Check the survey number or khasra number. If the seller cannot give you the mother deed, it is a big warning sign.
The Encumbrance Certificate
The encumbrance certificate is also called EC. This paper tells you if the property has any legal or financial problems. It is like a health report of the property. The EC shows if the previous owners took any loan against the property. It shows if the property was sold many times. It shows if any court case is pending on the property.
You can get the EC from the sub registrar office of that area. You can also get it online in many states through the state’s land record website. The EC should be clean. It should not show any loan that is still unpaid. It should not show any court order against the property. If the EC shows any problem, ask the seller to clear it first. Do not pay any money before that.
The Property Tax Receipts
Paying property tax is the duty of the owner. If someone has not paid tax for many years, the local municipality can take over the property. So always ask for the last five years of property tax receipts. See the name on the receipt. The name should match the seller’s name. See the address. The address should match the property. See the dates. The tax should be paid on time.
If the seller cannot show tax receipts, you can check online on the municipality website of that city. Many cities like Bangalore, Pune, Chennai and Ahmedabad have online tax check systems. If the tax is not paid, the seller must clear all dues before you buy.
The RERA Registration Number
RERA is the Real Estate Regulation Authority. Under RERA law, every new housing project in India must be registered. The builder cannot sell any flat or plot without a RERA number. If you are buying from a builder, ask for the RERA registration number. Then go to the RERA website of that state. Type the number. You will see all details of the project. You will see the completion date. You will see the builder’s history. You will also see if any buyer has filed a complaint against that builder.
If the builder does not have a RERA number, do not buy. It means the project is illegal. Many people have lost money buying flats in projects without RERA registration. Do not make that mistake.
The Occupancy Certificate And Completion Certificate
If you are buying a ready to move flat, you must check two papers. One is the completion certificate. Second is the occupancy certificate. The completion certificate is given by the local authority when the building is fully built as per the approved plan. The occupancy certificate is given when the building is fit for living.
Without these two certificates, the building is not legal. You cannot get water connection. You cannot get electricity connection properly. The bank will not give you a home loan. And the municipality can order demolition any time. So before you pay the full amount for a ready flat, ask for clear copies of completion and occupancy certificates.
Check The Land Title
Title means the legal right to own the property. A clear title means only the seller has the right to sell. No other person or government has any claim on it. You can check the title by looking at all the papers we talked about. But for extra safety, you can also order a title search report from a lawyer. The lawyer will go to the registrar office and check all records. The lawyer will give you a written report saying the title is clear or not.
Spend a few thousand rupees on a title search. It is a small cost compared to the price of the property. A good title search report also helps you get a home loan faster because the bank trusts an outside lawyer’s opinion.
Check The Seller’s Identity
You have to be sure that the person selling the property is the real owner. Ask for the seller’s PAN card. Ask for Aadhaar card. Ask for passport size photo. Match the photo with the photo on the sale deed when they bought the property. If the seller is selling on behalf of someone else, ask for a power of attorney. Check if the power of attorney is registered. A notarised power of attorney is not enough for selling property. It must be registered.
If there are two or more owners on the property paper, all of them must sign the sale agreement. If one owner has died, you need to see the death certificate and the legal heir certificate. If the legal heirs are not agreeing, one person alone cannot sell the full property.
Check For Government Acquisition
Sometimes the government acquires land for roads, metros, parks or other public work. If your property falls under such acquisition, you will not get full ownership. The government may take the land and give very little money. You can check this at the local tehsil office. Ask for a report on the survey number of the property. The report will tell if any acquisition notice has been issued.
You can also check online on the state’s land record portal. Every state has its own portal. In UP it is Bhulekh. In MP it is MP Bhulekh. In Maharashtra it is Mahabhulekh. In Tamil Nadu it is TN Patta Chitta. Learn the name of your state’s portal and check the land record before you buy.
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Check The Approved Building Plan
If you are buying an under construction flat or a house in a layout, ask for the approved building plan. The plan should have a stamp from the municipality or development authority. The plan should show the exact size of the flat, the setbacks, the parking area, the common areas and the floor area ratio.
If the builder has built something different from the approved plan, that extra part is illegal. The authority can fine the builder and even demolish the illegal part. Many buyers in Noida, Gurgaon, Pune and Bangalore have faced this problem. The flat they bought looked good but extra floors were not approved. Later the authority sealed the building. So always compare the real building with the approved plan.
Check For No Objection Certificates NOCs
For a legal property, the builder or seller must get No Objection Certificates from different departments. These include NOC from the fire department, NOC from the pollution board, NOC from the airport authority if the building is near an airport, NOC from the electricity department and NOC from the water department. Without these NOCs, the property is not fully legal. how to verify property documents in India.
Ask the seller for copies of all NOCs. Then call the concerned department or check online to confirm if the NOCs are real. Many builders show fake NOCs. A simple phone call to the fire department or airport authority can save you from a big fraud.
What To Do Before Signing The Sale Agreement?
Do not sign any paper in a hurry. Take your time. Read each line of the sale agreement. The sale agreement is not the same as the sale deed. The sale agreement is a promise to sell in the future. The sale deed is the final transfer. Many sellers put hidden clauses in the sale agreement. For example, they write that the buyer cannot go to court if there is a problem. Or they write that the buyer will pay all old dues. A good lawyer can show you such trap clauses.
Never pay the full amount before registration. The common method is to pay a small token money at the time of sale agreement. Then pay the remaining amount at the time of registration when the sale deed is signed in front of the registrar. If the seller asks for full money before registration, say no clearly.
The Day Of Registration
On the day of registration, you and the seller must go to the sub registrar office. You must carry two witnesses. Take your original identity cards. Take the original documents of the property. The registrar will check everything. Then you will sign the sale deed. Then the seller will sign. Then the witnesses will sign. Then the registrar will put the government stamp and register the property in your name.
After registration, you will get the registered sale deed. This is now your property paper. Keep it safe. Make a few colour copies. Also keep a digital copy in your email or phone. After registration, you must also apply for mutation of your name in the land records of the tehsil. Mutation is the process where the government updates its record with your name as the new owner.
Common Property Frauds In India
Many frauds happen in property deals. One common fraud is fake sale deeds. The seller shows you a sale deed that looks real but is completely fake. Another fraud is selling the same property to two people. This is called double selling. Another fraud is selling a property that is already in court. Another fraud is selling a property that belongs to a person who has died and the seller is not the real heir. Another fraud is showing fake tax receipts or fake EC.
To avoid these frauds, always check original documents. Never trust photocopies. Always visit the registrar office yourself or send a lawyer. Always meet the seller in person. If the seller refuses to meet or always sends a broker, be careful.
What To Do If You Find A Problem?
If while checking the documents you find any problem, stop the deal immediately. Do not listen to the seller’s promise to fix it after taking money. Do not give any advance without solving the problem. If the problem is small like an unpaid tax, ask the seller to pay it and show you the receipt. If the problem is big like a missing mother deed or a broken ownership chain, leave the property and look for another one. There is no shortage of properties in India. Do not fall in love with one property so much that you ignore the problems.
Take Help From Professionals
You are not expected to know everything about property law. That is why you should take help from a good local lawyer who handles property cases. The lawyer will charge you some fees but that fees is nothing compared to the loss you can face. Also take help from a bank if you are taking a home loan. Bank officials are trained to check documents. If a bank rejects the loan because of document problems, that is a clear sign that the property is not safe.
Summary Checklist For You
Here is a simple list to remember. Before buying any property in India, check these papers.
One, the chain of ownership. Two, the registered sale deed. Three, the mother deed. Four, the encumbrance certificate. Five, the property tax receipts. Six, the RERA number if buying from a builder. Seven, the completion and occupancy certificates for a ready flat. Eight, the title search report from a lawyer. Nine, the seller’s identity proof. Ten, the approved building plan. Eleven, all NOCs. Twelve, the land record from the tehsil portal.
If all these papers are clear and all names match and all stamps are real, then the property is most likely safe. Then you can go ahead with the registration.
Final Words
Do not let anyone hurry you. Property buying is not like buying vegetables. You cannot return it the next day. Once you pay the money and register the property, the deal is final. Any mistake after that will cost you time, money and mental peace. So check each paper. Ask questions. Take a lawyer. Visit the registrar office. Visit the property at different times of the day. Talk to neighbours. Check the land record online. Be slow. Be careful. Be sure. That is the only way to buy a property without tension in India.
